TSC Ratings' Updates: Winn-Dixie

Revenue increased by 0.6% since the same quarter a year ago, boosting EPS significantly in the most recent quarter compared with the same quarter a year ago. During the past fiscal year, Nippon increased its bottom line by earning $2.32 vs. $1.45 in the prior year. This year, the market expects an improvement in earnings to $2.44. Net income growth of 375.4% from the same quarter one year ago has significantly exceeded that of the S&P 500 and the diversified telecommunication services industry.

Shares are not only trading higher than they were a year ago, but the stock has outperformed the rise in the S&P 500 over the same time period. It goes without saying that even the best stocks can fall in an overall down market, but in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

We've downgraded express trust San Juan Basin Royalty Trust(SJT Quote) from buy to hold. Strengths include its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including premium valuation and a decline in the stock price during the past year.

Revenue rose by 41.7% since the same quarter a year ago, outpacing the average industry growth of 30.3% and boosting EPS. The company has a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. It also has a quick ratio of 1.87, which demonstrates the ability of the company to cover short-term liquidity needs. San Juan Basin Royalty TRUST has improved earnings per share by 40% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently, but we feel it is poised for EPS growth in the coming year.